Decision-Making
Organisational Traps
Organisational decision-making phenomenonDefinition
Groups and organisations can become locked into patterns of behaviour that no longer serve their goals, because acknowledging the need for change would require admitting past decisions were wrong. This is an organisational decision-making phenomenon rather than a single individual cognitive bias — it emerges from how organisational systems reinforce escalation of commitment, groupthink, siloed decision-making, incentive misalignment and the normalisation of deviance.
Why it happens
Institutions accumulate commitments — to strategies, people, and narratives. Reversing course can feel like admitting failure, threatening the status of those who made the original decisions. The result is a slow drift where resources continue to flow to outdated approaches, and warning signs are reframed as temporary setbacks.
Real-life examples
- A company continues to invest in a failing product line because the executive who championed it is still in charge.
- A government maintains a policy that experts say is ineffective, because changing it would imply the original decision was mistaken.
- A team keeps using a workflow tool that everyone dislikes, because switching would require admitting the initial purchase was a poor choice.
How to counter it
- Create a culture where changing course is framed as learning, not failure.
- Use pre-commitment rules: set criteria in advance for when to abandon a project.
- Bring in external perspectives who do not have a stake in past decisions.
- Separate the decision to change from the evaluation of who made the original choice.
Quick tips
- Set exit criteria before committing to a course of action.
- Treat changing your mind as a sign of leadership, not weakness.
- Ask: 'Would we start this today, knowing what we know now?'
- Invite outside voices who have no investment in past decisions.
Sources and further reading
- Overcoming Organizational Defenses: Facilitating Organizational Learning
Allyn & Bacon · accessed 2025-12-01